ALY.L Regulatory News (ALY)

14 Dec 2007 17:28

Ashley (Laura) Hldgs PLC14 December 2007 LAURA ASHLEY HOLDINGS PLC Interim Management Statement 14 December 2007 In the first 19 weeks of the second half, total UK retail sales increased by+3.1% primarily due to the increase in retail selling space. In the first 10months of the current financial year, as part of our store expansion andrealignment programme, we opened 26 new stores in the UK. Difficult tradingconditions, combined with new store openings impacted LFL sales which were down-10.8% in the first 19 weeks of the second half. However, during the sameperiod, margin rates have continued to improve compared to last year, up by twopercentage points. Our own store operations in Continental Europe consist of three stores in Paris.All other European store operations are franchised. Our Franchise and Licensingbusinesses are performing at similar levels to last year. In the first 19 weeks of the second half, we have seen strong sales growth inour Internet business (+26%) countered by a decline in sales in our Mail Orderbusiness (-17%), with total sales across the direct channel down by £0.3million. Our balance sheet remains strong, with £23.8 million of net cash at the end ofNovember 2007 and no borrowings. Although trading conditions remain challenging, we expect profit before tax forthe financial year ending 26 January 2008 to be broadly in line with theconsensus of brokers' forecasts. We will continue our focus on store expansionand realignment, improved product offering and increased operational efficiency. Enquiries: David Cook Laura Ashley 0207 880 5100 This information is provided by RNS The company news service from the London Stock Exchange